Question $1$:

Mathew, the project manager for the R&S project, is concerned about the development profit for the

HDPE pipe. Although the subcontractor, Greens Pipe, has promised a profit of $10$ million, Mathew

knows that the profit will be a function of the number of other projects Greens Pipe is working on$.$ As

an incentive to increase the profit, Mathew has three options:

S$1$: Do nothing

S$2$: Promise Greens Pipe a future contract

S$3$: Threaten to never contract with Greens Pipe again. He estimates the impact of these actions on

profit would be as follows in Million Dollars:

Payoffs: Greens Pipe Workload

Strategy Slow Average Busy

S$131117$

S$2468$

S$31321$

What strategy should Mathew adopt based on uncertainty criteria? Use criteria similar to the Maximax,

Maximin, Minimax regret, and Maximum expected payoff, except note that the criteria must be